Kuniko Limited provided an update on its drilling and exploration activities at its Skuterud Cobalt Project in Norway. A diamond drilling program at the Skuterud Cobalt Project (Refer: Figure 1) commenced on 2nd May 2022 with a planned 2,800 metres in 7 diamond core (DD) holes at the three target prospects for potential cobalt mineralisation, north of the historic Skuterud Cobalt mine. All targets are located by the presence of conductive anomalies at depth, with two targets within the `fahlband' trend where historic mining has occurred.

The drill program has since been extended beyond the original scope to be approximately 3,000 meters and 10 DD holes, enabling additional drilling to be undertaken at the priority Middagshvile target. Drilling commenced at the northern most target "Døvikkollen B", with the two drill holes KNI_DKB001 and KNI_DKB002 completed at the site on 19 May 2022 (Refer: Figure 2), while the second target "Damtjern" had one drill hole KNI_DMT001 completed on 29 May 2022. Drilling at the third drill target, closest to the historic cobalt mine and with the strongest geophysical response, commenced 2 June 2022, with five drill holes completed as at the date of this release.

A total of 2,500 metres have been drilled and the program is anticipated to conclude in mid-July 2022. Cobalt minerals, cobaltite and skutterudite (or other cobalt bearing minerals with similar optical properties to skutterudite) have been observed within the main sulphidic horizon, targeted in historical mining) in drill core from the Middagshvile target (Refer: Figure 4) in the course of preliminary logging on site. They are associated with disseminated, veined, rarely semi-massive sulphide mineralization, predominantly pyrrhotite with subordinate chalcopyrite and pyrite.

Cobalt minerals occur in various textural context, such as disseminated porphyroblasts or grain aggregates forming bands parallel or semi-parallel to main foliation or shearing, interstitial between coarse calc-silicates silicates such as diopside, at the contact with quartz veins amongst others, are intersected in all five drill holes at Middagshvile defining a mineralised zone open to depth. The mineralisation is mainly observed in quartzites, diopside calc-silicates and magnesian biotite/phlogopite schists. The main sulphidic horizon (Refer: Figure 5, red colour in the profile) is estimated to vary between 30m to over 50m (true thickness unknown), including barren sections within and/or disseminated sulphidic sections within adjacent units.

This estimation is based on preliminary logging and is considered subjective. Complete and detailed logging is underway and an update will be provided in due course. Improved estimations will become possible upon completion of logging of all drill core.

Additional thinner (up to 5 m in core, true thickness unknown) mineralized positions have been intersected in deeper parts of the lithological sequence. The second mineralised zone is hosted by quartzites and calc-silicate rocks at the contact, but mostly below biotite-sillimanite schist marker horizon. A third intersection of sulphides is observed below a thick mafic unit, hosted again by quartzites with minor calc-silicates.

The rocks display complex deformation with possible intricate folding of the mineralised rocks. The drilling program at Middagshvile has provided valuable information regarding the position of mineralization in the rock sequence. The mineralization occurs in quartzites, magnesian biotite/phlogopite-quartz schists and calc-silicate rocks above biotite-graphite-pyrrhotite schist followed by biotite-sillimanite schist.

The sequence of those two very distinctive lithological units is a considered a good marker horizon that will be a key target in the future drilling and geological surface mapping. Kuniko has in cooperation with geological consultants, GeoVista, completed additional modelling of the SkyTem geophysical data, resulting in improved defined targets leading to optimisation of drill hole design at Middagshvile. The modelling yielded conductive plate anomalies over Middagshvile for each of the six crossing flight lines.

The position of the conductive plates plunges toward the north, providing further targets open along strike towards the north. Structural geological data from drilling and geological mapping together with the position of the conductive plates will be used in interpretation of the deformation and folding style of the rock sequence at Middagshvile. The results will guide planning of additional drilling at the Middagshvile target.

In parallel with the drill program, Kuniko initiated further investigation of the historical drill core from drilling completed in 2017 by the previous exploration license holder, Berkut Minerals Ltd. ("Berkut"). Upon review of Kuniko's downhole geophysical surveys completed on Berkut's Middagshville boreholes, Kuniko identified several unassayed intervals with promising geophysical signatures. To better understand the mineralisation and distribution of grade at Middagshville, resampling work is being undertaken on the historical drill core available at the Geological Survey of Norway ("NGU") drill core archive located at Løkken Verk.

A total of 184 samples have been cut for a total of 200.59 metres, which are being dispatched to ALS for assaying. This process will allow Kuniko to integrate the results and data from these holes into the geological model, bringing the sampling on these historical holes up to the same high standard of detail as is being captured for Kuniko's current drill program. Drill holes from the Døvikkollen B and Damtjern targets have not shown visible mineralisation, however they will be evaluated to better understand their geological and geophysical context.

The two drill holes at Døvikkollen B intersected a rock sequence consisting of mainly mafic rocks alternating with thinner quartz-biotite schists and pegmatites. The one drill hole at Damtjern KNI_DMT001 intersected a rock sequence consisting of quartzites alternating with thinner zones of garnet amphibolite and albitised mafic rocks. This drill hole also intersected a subvertical 100 m wide fault zone with brecciated rocks.

The conductive anomalies being the target for the drilling at these two locations remain a subject to further investigation. Drill core has been logged on site throughout the program and is being dispatched to a centralized drill core service provider for photographing, cutting, and sampling, after which the samples are provided to ALS laboratories in Sweden for analysis. Turnaround times for results, upon receipt of the samples by ALS Sweden, remain at between approximately 60-90 days.

Kuniko is submitting batches of drill core on a regular basis to minimise turnaround time in reporting of results.